W O R K I N G W I T H D I F F E R E N T S T A K E H O L D E R S T O A C H I E V E S U S T A I N A B I L I T Y

1 1 T H J U L Y 2 0 1 1

Z A K A R I A M I T E I S A / G M P M A N A G E R - A F R I C A

Unilever Tea ProcurementSustainable Agriculture

Why Sustainable Agriculture?

♦ Agriculture provides more than 2/3 of raw materials for Unilever brands

♦ Consumers and NGOs demand ethical and SA sound production

♦ Security of supplies -unsustainable suppliers are unreliable suppliers

10+ years of working towards

sustainability on our own

estates

Current Unilever Commitment on Sustainability

All tea used in PG Tips, Lipton Yellow Label tea bags in Western Europe from Rainforest Alliance Certified™ farms by 2010 - Achieved

Extend Rainforest Alliance certification to all Lipton tea bags globally by 2015

All Unilever purchases to be sustainably sourced by 2020

What is Sustainable Agriculture?

It is farming in a responsible manner while enhancing profitability, well being of the people and the environment for now and the future.

Lipton/KTDA SA Tea Project (2006-8)

KTDA Contribution

In Kind

(Personnel )

(£224,000)

DfID funds (BLCF)

(£509,000)

Lipton Contribution

In Kind(Personnel &

assets)

(£449,000)

Technical Committee

STSC

Implementation team

Project Objectives

1. Demonstrate the economic value of good SA values to the smallholder farmers

2. Reduce cost of tea production in smallholdings by fine tuning inputs

3. Maintain product value in all KTDA traditional markets

4. Facilitate recognition of KTDA farmer by important customers

5. Reduce negative impacts of tea production on the Kenyan environment

6. Enhance farmer earnings through alternative crops e.g. fuel wood

Approach

To enhance farmer commitment and sustainability of the program, a two-pronged approach used to engage the farmer: Farmer Field Schools (FFS)

Learning in groups Participatory approach Hands on The field is the classroom

Conventional train and visit approach – traditionally used by Kenya Tea Development Agency (KTDA) Mostly one on one approach Demonstrations and field days conducted by technical staff

FFS location & group formation

Started in 2006 and ended in 2008 In 4 factories – Nyansiongo, Momul, Ngere and Mungania 6 FFS per factory – 24 in all 30 farmers per FFS – 720 farmers in all Joining FFS was voluntary Agreed criteria observed in selecting final FFS members

(age, gender, geographical distribution, Farm sizes, range of activities, Education level, Level of sustainability, Availability of farm owners, enthusiasm and potential local ‘champions’

Rainforest Alliance Certification

In 2007 Unilever made a decision embark on a journey leading to sourcing of RA certified tea.

The project committee decided to prepare the 4 project factories for RA certification in 2008

RA certification preparation involved: Commitment by farmers Training of staff and farmers Carrying out internal audits Addressing outstanding issues Audit & certification

Why Rainforest Alliance

Water

Policy framework and Management Systems com

mon

•Integrated crop Mgt,•Soil Mgt and conservation

•Soil fertility•Soil Loss•Nutrients•Pest Management

•Ecosystem conservation•Wildlife protection

•Fair treatment of workers•OHAS•Community Relations

Biodiversity

•Social capital & Human Capital•Local economy

Clo

se m

atch

Are

a fo

r im

prov

emen

t

Integrated waste management

Energy

Value chain

IDH/KTDA/RA/Unilever Project

Following success of the pilot project a new project was set up in 2009/10 with main Partners being KTDA, Unilever, Rainforest Alliance (among others)

Run by Steering Committee , Technical Committee, implemented by factory teams

Funded by IDH (the Dutch Trade Initiative) and The Dutch Embassy in Kenya

The IDH fund is part of a global project covering Kenya, Rwanda, India, Sri Lanka and Indonesia

Implemented over the 4 years (2010 to 2014)

Partners made match funding for various activities in the different countries

Total of 2 million Euros from IDH in 2010/11, 0.9 (45%) of which will be spent in Kenya

Main implementing partners

RAINFOREST ALLIANCE Overall project management as well as provide training services on the Sustainable Agriculture

Network (SAN) standard and Rainforest Alliance Certification services for 20 KTDA factories

UNILEVER (LIPTON)Co–Manage Project, facilitate training, support KTDA factories through the provision of its key Global and Kenyan personnel and direct contribution to Rainforest Alliance’s origin development program and coordinate other activities included in the IDH project .

KENYA TEA DEVELOPMENT AGENCY Co-manage the project and facilitate the training on Farmer Field School training methodology

and Rainforest Alliance certification through the provision of its key personnel at Head Office and factory level

WUR AND ETC EAST AFRICA Manage funds and activities related to Dutch Embassy funding, provide training and support in

2010 and 2011, carry out Monitoring and Evaluation of FFS and carry out & supervise scalability study

Project Objectives/status

Train and certify on the Rainforest Alliance (RA) program 20 out of 54 factories in 2010 & 2011 (236,000 out of 530, 000 smallholders managed by KTDA) – 60 % achieved

Train extension staff on FFS methodology for all KTDA factories (part of institutionalizing sustainable agriculture within the KTDA) – 100% achieved

Support FFS up-scaling program for two years – 70% achieved

Study wood fuel consumption reduction best practice, in partnership with other actors in the tea sector - done

Study FFS and certification programs to determine and share best practice system design for scaling up of training activities – well underway

Carry out a joint gender study to understand challenges and opportunities for improvement - done

Achievements/Benefits of SA & Certification

Certification process and system: farmer to farmer training Farmers empowered IMS model to deliver more benefits e.g. quality etc.

Better agricultural practices Improved productivity Better controlled inputs and costs Better fuel wood practices

Healthier local environment Trees planted and preserved Conservation of riparian areas Better fuel use efficiencies Water bodies protected

Achievements/Benefits of SA & Certification

Better conditions for the workforce Personal Protective Equipment Healthier working environment Motivation means higher productivity Gender study and workshop done with the Kenyan tea

industry

Advantage in the market for producers, customers and retailers

Stimulates interest from other buyers & farmer groups to commit to sustainable agriculture

Challenges in FFS, SA &RA certification

Lack of Finances to Set up and run FFS – personnel, learning materials,

motivational inputs etc Comply with certification criteria e.g. safe use, protection

against and appropriate storage of agrochemicals Huge number of farmers involved – average is 10,000 per

factory – 54 factories in KTDA! Most farmers with poor literacy levels – need for huge

numbers of visual materials in training